The company's net loss ballooned by $50 million year-over-year.
Franklin, Tennessee-based Community Health Systems (CHS) reported a net loss of $167 million in Q2, a much larger loss than the $110 million posted this time last year, according to its earnings report released Monday afternoon.
CHS saw its net operating revenues top $3.3 billion for yet another quarter, but this metric was down from $3.5 billion in Q2 2018. The for-profit hospital operator also experienced a $9 million deterioration to its adjusted EBITDA, totaling $402 million.
The company's earnings report came out the same day as the largest single-day drop for Wall Street in 2019, leaving CHS' stock trading below $2 per share.
During Q2, CHS' loss per share attributable to shareholders fell by $0.50 to $1.47.
For the first half of 2019, CHS completed seven hospital divestitures, as well as two divestitures that closed on August 1. The company stated that is continuing with its divestiture strategy and discussing potential deals with prospective buyers.
"The second quarter results reflect continued improvements in key operating metrics," Wayne T. Smith, chairman and CEO of CHS, said in a statement. "Our hospital leadership teams are making progress across our strategic imperatives – including Safety and Quality, Operational Excellence, Connected Care, and Competitive Position. We believe strategic investments in our transfer program, Accountable Care Organizations, service lines, and access points are driving stronger same-store volume and net revenue performance. We also believe that continued execution of these strategic initiatives, along with effective expense management, will lead to incremental growth in the back half of the year."
As was the case in Q1, CHS' net cash provided by operating activities took a positive turn, totaling in at $132 million. This well exceeded its $12 million loss in Q2 2018.
Admissions increased 2.3% on a same-store basis, with adjusted admissions rising 1.8% during the same period of time.
ADDITIONAL CHS Q2 EARNINGS REPORT HIGHLIGHTS:
- CHS expects its capital expenditures at the end of 2019 to be between $450 million to $550 million.
- On a same-store basis net operating revenues increased nearly 5% year-over-year.
- The provider's net cash used in financing activities was a loss of $107 million, well below the loss of $208 million in Q2 2018.
For complete financial information, review CHS' filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.